Investment Options
What follows is an introduction to the investments you can choose for your plan account. Reviewing this information can help you understand and compare your options. For more complete information, including fees and expenses or historical fund performance, call Fidelity at 1(800) 835-5098 (50 states and Puerto Rico), overseas participants can call 1(972) 556-1464 or 1(508) 787-9494 - collect for free prospectuses. Read them carefully before making your investment choices.
Your Plan offers you a variety of investment options. The question is, how will you know which options best suit your needs? The chart below can help you determine an investment strategy that best suits your needs, depending on your risk tolerance and time horizon. You can review the Investment Spectrum to see where your Plan’s investment options fall on the scale from conservative to aggressive. For additional help determining your investment strategy, visit Fidelity’s Web site at www.401k.com and click on the Asset Allocation Worksheet in the "Tools" section, or visit the interactive tools on NetBenefits SM at www.401k.com.
When you go on line, be sure to check out the Fidelity PortfolioP1anner SM. PortfolioPlanner can help you:
• Understand the fundamentals of
investing
• Evaluate your retirement goals and needs
• Determine a target asset mix
• Consider investment options to help you meet your goals
How to Change Investments
Please note: Exchanges between certain investment options may be subject to restrictions. Contact Fidelity for details.
| If you plan to retire: | And when thinking about risk you: | You might want to consider: |
| Within the next 1-3 years | Want as much assurance as possible that the value of your retirement savings will not drop, in exchange for a limited potential for growth | A conservative investment mix, more heavily weighted toward short-term investments and bonds, with a small portion invested in stocks to offset the effects of inflation. |
| In 4-6 years | Want your money to have the potential to grow, but still want some assurance of stability | Seeking growth primarily through stocks, combined with bonds and short-term investments for a more balanced approach. |
| In 7 years or more | Want your money to have the potential to grow as much as possible, but want a small amount of stability | An aggressive mixture of investments more heavily weighted toward a diversified mix of stocks, with a portion invested in short-term investments to off-set the effects of investment risk. |
POINTS TO KEEP IN MIND:
Participants can buy shares of the investment options offered through the Plan without paying a sales charge.
You can spread your investments among several options to take advantage of what each has to offer and help balance different types of risk.
Except for money market funds and managed income products, an investment option’s share/unit price will vary and you may have a gain or loss when you sell shares/units. An investment option’s yield and return will vary.
Many of the terms used in the fund descriptions are defined in the Index of Basic Terms section of your Retirement Planning Guide.
Generally, international investments, especially those in emerging markets, involve greater investment risk than their U.S. counterparts, and their performance can be closely tied to economic, political and environmental conditions, including changes in currency values. As a result, any mutual fund that primarily invests overseas has been included here in the "international" category.
For more complete information on Fidelity® mutual funds, including historical fund performance, visit www.40lk.com and read the mutual fund prospectuses. Additional help is available by calling the Fidelity® Retirement Benefits Line at 800-835-5098 (50 states and Puerto Rico), overseas participants can call 1-508-787-9494 or 1-972-556-1464 collect (be sure to identify’ yourself as an AAFES 401(k) plan participant when calling collect).
Investment Spectrum
 |
Fidelity Freedom Funds Fidelity Freedom Funds® offer a blend of stocks, bonds and short-term investments within a single fund. They are designed for investors who don’t want to go through the exercise of picking several funds from the three asset classes but still want to diversify among stocks, bonds and short-term investments. Remember that investing in one investment option is not a complete or diversified retirement program.
These spectrums are based solely on the characteristics of the general investment categories of the investment options and not on actual security holdings, which can change frequently. Investment options are listed in alphabetical order within each investment category. Risks associated with the investment options can vary significantly within each particular investment category and the relative risks of categories may change under certain economic conditions.
The Fidelity Freedom Funds® are represented on a separate investment spectrum because each fund (except Fidelity Freedom Income) will gradually adjust the asset allocation to be more conservative as the funds approach their target dates. Approximately six years after the target date, the asset allocation of each fund will match the allocation of the Freedom Income Fund. The spectrum illustrates the relative risk and return of each fund as compared to the funds in the Freedom family.
The spectrums do not represent actual or implied performance. For a more complete discussion of risks associated with the mutual fund options, please read the prospectus before making your investment decision.
- Money Market Funds
- Managed Income Options
- Income Funds
- Growth and Income Funds
- Growth Funds
- International Funds
- Balanced Funds
- Freedom Funds
